The national economy remains in poor condition. Because more people are out of work, more people are also falling into debt. Debts usually end in bankruptcy which isn’t good. When you or a loved one is contemplating bankruptcy, it is important to read the following piece in order to understand available alternatives.
You might experience trouble with getting unsecured credit after filing for bankruptcy. In this event, you should attempt to apply for a secured card or two. They offer you the chance to demonstrate the seriousness with which you now take your financial obligations. After using a secured card for a certain amount of time, you might be offered an unsecured card once again.
Although you can find many bankruptcy attorneys listed in your local Yellow Pages or online, it’s best if you can find one through the personal recommendation of a friend, family member or acquaintance. There are plenty of companies who know how to take advantage of people who seem desperate, and it’s important to be sure your bankruptcy can go smoothly; take your time and choose someone you can trust.
Don’t throw in the towel. You might even be able to get back secured property that has been repossessed in the 90 days before filing. If you have any property in repossession that was taken less than three months before filing for bankruptcy, then there are good odds that you can get your property back. Consult with a lawyer who can advise you on what you need to do to file a petition.
Before you file for personal bankruptcy, be sure that you are cognizant of all current laws. Bankruptcy laws are in constant flux, so just because you knew the law last year doesn’t mean that the laws will be the same this year. To find out about these changes, you can look at your state’s legislation website or contact their office.
Chapter 7
You may have heard bankruptcy referred to differently, either as Chapter 7 or Chapter 13. Learn the differences between the two before filing. Chapter 7 bankruptcy is intended to wipe out all outstanding debts. Your responsibilities to your creditors will be satisfied. Chapter 13, on the other hand, involves a five year payment period before any remaining debts are cancelled. It’s imperative that you know the differences among the various categories of bankruptcy so that you are able to choose the wisest one for you.
It is important to understand clearly the benefits of a Chapter 7 or 13 bankruptcy. Research both types of bankruptcy online, and weigh the positives and negatives each would offer you. If anything you see is unclear or doesn’t make sense, go over it again with your attorney before making the final filing decision.
Think about all the choices available to you when you file for bankruptcy. Some alternatives to filing for personal bankruptcy include debt repayment plans, interest rate reduction plans, and debt consolidation. Talk with the personal bankruptcy lawyer to find out more. If you are about to lose your house, talk to your lender about a loan modification. Your particular loan holders can provide a lot of assistance if you’re just willing to speak with them. You can negotiate lower rates, longer terms, and other means of repayment that may keep you from having to file a claim. Making arrangements with the creditors to make reasonable payments towards you debt is a much better plan than bankruptcy because the lender simply wants the loan repaid.
Your trustee may be able to help you secure an auto loan or get a mortgage even though you have filed Chapter 13. Of course, it’s difficult. Normally, the trustee assigned to your bankruptcy must approve any new loan. To show that you are responsible and prepared for the undertaking of a new loan, flesh out a full budget. You’ll also need a valid reason for making the purchase.
The economy is showing signs of recovery, but unemployment and underemployment are still high. That said, it is possible to avoid bankruptcy even if you are having cash flow problems. Hopefully this article has provided you with some tips to keep yourself, or someone else, from having to file for bankruptcy. Good luck.
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